Libyan state television said on Thursday that government forces had cleared Ras Lanuf of "armed gangs", a reference to rebels, but rebel soldiers denied the eastern oil town had fallen to Muammar Gaddafi's troops.

Rebels near Ras Lanuf had been heavily bombarded earlier on Thursday and witnesses reported at least two tanks headed to the town. One rebel soldier told media that government forces had entered the town and rebel forces had withdrawn several km east. Two others denied the town had fallen.

State television also reported that a town much further east, Brega, had been cleared of rebels, but correspondents in Brega said there was no sign of Gaddafi forces on the ground. Rebels said warplanes bombed Brega during the day.

The Libyan government must hand over power "without delay", the president of the council of European Union member states said Thursday.

Friday's EU summit 'will make clear to the Libyan authorities that the use of force against citizens must stop. Those responsible will face grave consequences. The current leadership must give up power without delay,' Van Rompuy said in a video message.

Meanwhile, a source close to the French President said Nicolas Sarkozy would propose air strikes on Libyan leader Moamer Kadhafi's command headquarters to EU leaders.

At an EU summit on the Libyan crisis, he will propose "striking an extremely limited number of points which are the source of the most deadly operations" by forces loyal to Kadhafi, said the source, who asked not to be named.

The three sites being considered are Kadhafi's Bab al-Azizia command headquarters in Tripoli, a military air base in Syrte, east of Tripoli and another in Sebha in the south, the source added.